An Advantage of Achieving the Right Worker-Task Specialization and Linking

question 65

Multiple Choice

An advantage of achieving the right worker-task specialization and linking people and tasks by the speed of the production line is:

• A) lower costs.
• B) lower job satisfaction.
• C) decreased workplace monotony.
• D) decreased organizational output.
• E) decreased mechanization of work process.

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Definitions:

Financial Leverage

Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.

Interest Tax Shield

The decrease in what one owes in income taxes by removing the cost of debt interest from the taxable income figure.

Capital Structure Puzzle

The term refers to the challenge and debate over the optimal composition of a company's debt and equity financing to maximize its value.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price.